Consolidating company accounting functions australia dating in the dark
The consolidation accountant will primarily provide information for people external to the organisation or its day to day operational management – such as auditors, shareholders and financial analysts.
The group controller, in his task of analysing variances against budgeted or forecast data, needs sufficiently detailed information to identify causes and provide evidence of their impact upon results.
It is generally the vendor, namely the company issuing the invoice, who holds sway and who can allocate the purchase transaction to its counterpart in ERP.
Furthermore, due to the possible volume of transactions, the impact of currencies and the production of capital goods, these processes are often highly time-consuming for the consolidation accountant and sometimes cause problems for the audit by statutory auditors.
It is essential to monitor and analyse the performance of those departments and companies with the greatest economic importance across the group.
It is not unusual for reporting frequency to vary according to the size and turnover of the subsidiary.
Before we begin, here is a quick summary of the roles and responsibilities of each one: The group controller has to: The socio-economic situation affects these two functions but where the group controller is expected to anticipate its effects, the consolidation accountant will attest to, and give evidence of, the impact of the situation.
For the group controller, the scope of consolidation of the group is considered primarily from an economic point of view.
However, it is beneficial for the two functions to communicate and exchange information to improve the quality of work carried out by each of them.To understand this better we shall examine first the differences between these two finance functions.Then we shall look at the possible interactions between the two roles.This information could also be, for example, legal in nature.Processing by the group controller, most typically ‘summation’, may be used for projections, simulations and analysis of variances and trends.